The money created by the banking system when deposits in one bank result in deposits in other banks by way of the bank loan process tends to decrease the banking system's volatility

What is one reason private solutions to externalities do NOT always work?

a) Government participation in such solutions complicates the process. b) Some parties benefit from externalities. c) Interested parties incur costs in the bargaining process. d) The actual costs and benefits of the problem are difficult to see.

If government were to regulate a monopolistically competitive market by setting a single price, a consequence would be:

A. more output supplied to the market. B. less product variety. C. lower prices in those markets. D. All of these statements are true.